Automotive Manufacturing

Workforce

• Average wages in Entergy Mississippi territory are more than 30 percent lower than the U.S.
• Mississippi is a Right-to-Work state.
• The Entergy Mississippi area’s workforce is over 600,000 strong, with 10 percent employed in manufacturing.
• Nearly 9,500 workers are employed in automotive manufacturing in the Entergy Mississippi territory.
• The Center for Advanced Vehicular Systems at Mississippi State University conducts research, engineering design and development and technology transfer.
• Mississippi is home to automotive manufacturers Nissan and Toyota.
• More than 150 transportation equipment manufacturing-related establishments are in Mississippi.

Raw Materials

• Three steel plants are located in Mississippi and four additional plants are located near the state line.
• Nearly 50 plastics and rubber manufacturers are located in Mississippi.

Transportation

• Mississippi has 28 rail systems, including the following Class 1 carriers: Burlington Northern Railway, CSX Transportation, Canadian National Railway, Kansas City Southern Railroad and Norfolk Southern.
• Bordering the state of Mississippi to the west, the Mississippi River begins in Minnesota and runs more than 2,000 miles south to the Gulf of Mexico.
• Six ports are located within the Entergy Mississippi territory with access to the Mississippi River.
• The Port of Memphis is located in adjacent Shelby County, Tennessee.
• The Mississippi ports include the Port of Rosedale, Port of Greenville, Yazoo County Port, Port of Vicksburg and the Natchez-Adams County Port.
• Mississippi’s highway system connects to essential regional markets including New Orleans, Memphis, Nashville and Atlanta with six interstates and 14 federal highways.

Business Climate

• Louisiana is ranked as one of the best business climates:
  • #1 for incentive programs
  • #1 exporting state in the country
  • Best-performing state economic development agency
  • Lowest state/local tax burden in the U.S. for new manufacturing projects
  • Lowest business tax structure for capital-intensive manufacturing and labor-intensive manufacturing facilities (Tax Foundation/KPMG study)
• Industrial utility rates are among the lowest in the South.
  • Second-lowest industrial electricity rates in the South (2012-2015 avg.)
  • Lowest industrial natural gas rates in the South (2012-2015 avg.)
• Louisiana has been a right-to-work state for over 30 years –
  • with one of the 15 lowest unionization rates in the country,
  • a private workforce unionization rate of only 3.8%, and
  • no requirement for employees to join a union at their place of employment, even if the facility is unionized.

Workforce

• LED FastStart^® has ranked as the nation’s best state workforce training program for the past ten consecutive years.
• Comprehensive, customized recruitment, screening, training development and training delivery are offered through LED FastStart^® – all at no cost.
• LED FastStart^® staff has delivered customized workforce solutions for a variety of automotive companies – GM, Honda, Ford, Kia, Suzuki, Yamaha, Pirelli, Toyo Tires, Kubota, Mahindra.
• Skilled workers for the automotive sector are available from a statewide manufacturing workforce of 800,000.

Education

• Public postsecondary institutions near the Franklin Farm site:
  • University of Louisiana at Monroe
  • Louisiana Tech University
  • Grambling State University
  • Eight campuses of the Louisiana Delta Community College System

Logistics Advantage

• Louisiana’s robust logistics options provide convenient access to North American markets.
  • Six interstate highways form a well-positioned grid with access to water and rail connections from all six.
  • Louisiana’s extensive port system forms the gateway to 35 interior states through the Mississippi River system and to worldwide markets through the Gulf of Mexico.
  • Louisiana has six Class 1 railroads and 2,940 miles of track in freight service.
• The state’s strategic low-cost location serves the Southern Auto Corridor and Mexico.
• An extensive OEM and supplier network are accessible within the Southern Auto Corridor.

Workforce

• Arkansas is a Right-to-Work state.
• The statewide average hourly wage is less than $20.00 per hour.
• The 1.3 million skilled and trained workforce is projected to increase 7% from 2013-2023.
• Arkansas has the second highest percentage of manufacturing employment in the South.
• Workers in welding and metal fabrication related occupations are expected to increase more than 9% by 2024 to 8,116 in the Entergy Arkansas area.
• Engineers are projected to increase more than 5% over the next five years in Entergy Arkansas territory.

Access to Raw Materials and Markets

• More than 100 metal fabrication establishments are located in Arkansas.
• More than eighteen OEM Parts Suppliers and ten Aftermarket Automotive Parts Suppliers doing business in Arkansas.
• Over 100 million customers are located within a 550-mile radius of Arkansas, which represents 40% of the total U.S. population.

Transportation

• Three Class 1 railroads serve Arkansas, including Union Pacific, BNSF and Kansas City Southern
• Five commercially navigable waterways, including the Arkansas River, Mississippi River, Ouachita River, Red River and White River, provide additional transportation options
• Three major interstate highways traverse Arkansas, connecting to major population centers within a day’s drive

Cost of Doing Business

• Amendment 82 authorizes bond financing for super projects that meet certain criteria. Approximately $185 million in bonding capacity is available. Funds can be used for site preparation, infrastructure and workforce training.
• Incentives: property tax abatements through IRBs, foreign trade zones, sales/use exemptions, tax back sales/use tax refunds, fully funded Governor’s Quick Action Closing Fund
• Arkansas has the fourth lowest cost of doing business int he nation according to a 2015 CNBC ranking.